Your hot water just died. What now?
A dead hot water unit is the one home upgrade almost nobody plans. You find out on a Saturday, in the shower, and you have about a day to make a fifteen year decision. Here is how to make a good one quickly.
The short answer
Turn the water and the power or gas off at the unit, then take a photo of the label on the side. That label tells any installer what you have. You have four options: repair it, replace it with the same thing, switch to a heat pump, or switch to solar hot water. If your unit is over ten years old, repairing it is usually money you spend twice. A heat pump costs more up front, has the biggest rebates behind it, and runs for roughly a third of the cost.
In the first hour
Shut off the water at the valve above the unit and turn off its power or gas. Then photograph the label. That is everything an installer needs to quote you.
Before you say yes
Ask for a heat pump price alongside the like for like price. Ten minutes, and it is the only chance you get for the next fifteen years.
If it can’t wait
Ask whether a temporary unit can go in now and the real decision be made next week. Some installers will do this. Most are never asked.
The first hour
Stop the damage, then get the label.
If there is water on the floor, turn off the valve on the cold pipe going into the top of the unit. It is usually a lever or a small tap. Then turn off the power at the switch beside it, or the gas at the little tap on the gas line. That stops the unit trying to heat a tank it is losing.
Now take a photo of the label on the side. It has the brand, the model, the capacity in litres and the year it was made. Everything an installer needs to price the job over the phone is on that sticker. Hunting for it later, while somebody waits on the line, is how people end up taking whatever is on the truck.
One more photo is worth taking: stand back and shoot the whole unit and the space around it. Whether it is inside or outside, how much room there is beside it, and what the pipes do. A heat pump is a different shape and needs air around it, so that photo answers the first question every installer will ask.
Worth knowing
A leak from the small pipe at the side that drips now and then is normal. Water pooling under the tank is not, and it means the tank itself has gone. Tanks are not repaired, they are replaced.
Your options
Four ways out, and what each one really costs.
Repair it
Is the unit under about eight years old? If the fault is an element, a thermostat or a valve, a repair is usually the sensible answer. If the tank has rusted through, there is no repair. If it is over ten, you are paying to keep a thing that is going to fail again.
Why it comes here
Cheapest today. Only worth it on a young unit with a fixable part.
Who does it
A plumber, or a hot water specialist. Ask them to tell you the age before they quote the fix.
Replace it with the same thing
The fastest option and usually the cheapest on the day. It also fixes your running cost for the next ten to fifteen years. That is the part people forget while they are cold.
Why it comes here
Fast. Almost always available same day. No rebate on a like for like gas swap.
Who does it
A plumber. For gas, one with a gas licence.
Switch to a heat pump
A heat pump moves heat from the air into your water instead of making heat from scratch. It uses roughly a third of the electricity of a plain electric tank. It costs more to buy. It has real money behind it in most states. It is also the one that pairs with solar later.
Why it comes here
Biggest rebates. Lowest running cost. Needs air space and a bit more planning.
Who does it
A plumber who has fitted heat pumps before, usually with an electrician for the wiring.
Up to $1,960
VictoriaTwo Victorian programs stacked, for owner occupiers swapping a gas unit for a heat pump and choosing a locally made product. Replacing an old electric system instead, the ceiling is up to $2,030.
Switch to solar hot water
Panels on the roof heat the water directly, with a booster for cloudy weeks. It works well in warm parts of the country and less well in cold ones. It costs more to install than a heat pump and it needs the right roof. That is why it is the least common answer now. Not because it is bad, but because a heat pump does the same job with fewer conditions.
Why it comes here
Very low running cost in the right climate. Roof dependent, and slower to organise.
Who does it
A plumber with solar hot water experience, and often a roofer for the mounting.
What your state does
The help is real, and it is different everywhere.
Hot water is the upgrade with the most government money behind it in Australia, because it is the easiest big win in a house. But there is no national scheme, so what you get depends entirely on where you live.
New South Wales now publishes indicative amounts for its Energy Savings Scheme discount, shown below. It is a discount, not a cheque: your installer takes it off the quote, you still pay a minimum amount yourself, and the final figure depends on the unit and the job. Compare quotes from installers who offer it.
In the ACT, concession card holders who own and live in their home can claim half the cost of a hot water heat pump back, once they have done a free online workshop. The money usually lands around ten business days after the claim is processed.
In South Australia there is no state cheque either. Energy retailers meet efficiency targets by offering discounted upgrades, so the offer depends on who sells you your power. Ask your retailer directly, and ask your installer which retailer offers are open this month.
Victoria stacks two programs and publishes the amounts, which is where the Victorian figure in the heat pump option above comes from. We found no household hot water rebate open in Queensland, Western Australia, Tasmania or the Northern Territory when we last checked.
Up to $640
New South WalesIndicative discount for replacing an electric water heater with a heat pump, taken off the installer’s quote. Replacing a gas water heater, it is up to $330.
Up to $2,500
ACTHalf the supply and installation cost of a hot water heat pump, for concession card holders who own and live in the home.
Where this comes fromenergy.nsw.gov.au, checked 14 October 2026climatechoices.act.gov.au, checked 14 October 2026escosa.sa.gov.au, checked 10 September 2026
If yours is gas
There is a deadline coming, and it is only in Victoria.
From 1 March 2027, a gas hot water system in an existing Victorian home cannot be replaced with another gas one when it dies. For owner occupiers that rule covers hot water. For rentals it covers heaters as well.
That is law rather than a prediction, and it only applies in Victoria. But it is worth knowing wherever you live, because it tells you which way the whole country is pointing. If you put a new gas unit in this year, you are likely to be the last person in that house who does.
Where this comes fromenergy.vic.gov.au, checked 6 October 2026
What we couldn’t confirm
Numbers we were told, and could not stand behind.
Hot water is where the most confident figures get quoted, and it is where the fewest of them have a government page behind them. These are the ones we went looking for and did not find.
“Heat pumps cut your bill by 80%”
The federal government’s energy.gov.au says a heat pump uses about 30% of the energy of a conventional electric hot water system, so against a plain electric tank the saving is large. Against gas it is much smaller, and your tariff and how much hot water you use decide the rest. One number cannot cover both.
Same day rebate processing
No scheme promises it. In New South Wales and under Solar Victoria the discount comes off the price before you pay. The ACT pays its rebate into your account, usually around ten business days after the claim is processed. Ask your installer to put their expected timing in writing.
Quick answers
The questions people ask at the worst moment.
Can I get hot water back today?
Usually yes, if you accept a like for like swap. A heat pump is more often a few days, because of the unit and sometimes an electrician. Ask whether a temporary fix is possible if the wait is the only thing pushing you.
Is a heat pump noisy?
It makes a low hum like a fridge or an air conditioner outdoor unit, mostly while it is heating. Where it goes matters. Beside a bedroom window is a bad idea. Beside a garage or a side path is fine.
Do heat pumps work in cold places?
Yes, and they get less efficient the colder it gets. Units sold here are rated for Australian conditions. But if you are somewhere that frosts hard, ask for the figure at low temperature, not the headline one.
How long should a new unit last?
Ten to fifteen years for most tanks. Ask about the warranty on the tank and the warranty on the parts. They are usually different lengths, and only one of them gets quoted.
Should I get a bigger tank while I am at it?
Only if the household has grown. A bigger tank costs more to buy and more to keep hot. If you are running out of hot water now, say so, and let the installer size it rather than guessing up.
Is the old unit worth anything?
The tank is scrap steel and most installers take it away as part of the job. Ask whether removal and disposal are in the price, because sometimes they are quoted separately.
What to do today
Three things, in the next hour.
Right now
Water off at the valve, power or gas off at the unit, and photograph the label on the side.
Before you call
Photograph the whole unit and the space around it, so an installer can tell you on the phone whether a heat pump fits.
On the call
Ask for two prices: like for like, and a heat pump with any rebate already taken off. Then you are comparing the real numbers.
When you’re ready for help
Find the right help for your next step.
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